Always remember that clients don’t issue addendum before making changes to their behavioral patterns.
‘Attitude subject to change in the blink of an eye’, I read this quote in one of the whatsapp profiles and thought how true this is in our daily life.
We don’t realize it even though for an advisor it is very important to be aware of the changing attitudes and behavior of clients. Most advisors have this habit of ignoring change and continuing with their routine without realizing that the world around them (read clients) is changing.
People live in present and think of the past, which restricts them to move forward. They believe that things will remain the way they are and therefore when the world around them (read AMCs, regulator) changes they feel it is unfair.
A situation which I believe is very dangerous for advisory business is when people react to changes in the market (read stock market, fixed income market) which is not in their control and their reaction doesn’t have any impact on the market. Rather, they should be reacting and responding when there are changes happening in a client’s life - financial and emotional.
One such area which requires immediate attention and action is technology. Technology not only reduces costs but also brings in a lot of convenience. It starts with something as basic as using MS office and having a website with login ids for clients to track their portfolio.
If people start communicating with clients over email and send portfolios or give login facility it reduces lot of man-hours. But getting out of the comfort zone is a tough task for many advisors. Communicating over email has other benefits as well. The conversation is documented and in the era of strict regulations, it also protects advisors.
Let me cite a personal example of how the attitude of people is changing even in small towns. My sister bought few sarees online for her daughter’s marriage. Well, she doesn’t stay in UK or the US, not even in Mumbai. She stays in Varanasi, a place which is famous itself for sarees. I asked her the reason for buying online and she said that she wanted a particular variety which was not available in Varanasi. She ordered it online since it was convenient and also because it could be replaced, if she didn’t like it.
It gives a strong message that if the advisor is not geared up for changes in client needs and attitudes, it is going to be a tough journey ahead.
Always remember that clients don’t issue addendum before making changes to their behavioral patterns.
It’s high time we realize that the business needs to grow beyond market, because ‘the purpose of our business is to create a customer who creates customers’.
Lastly, I will use the following quote which I read recently ‘You will never change your life until you change something you do daily. The secret of your success is found in your daily routine’.
Vinayak Sapre runs Insights, an advisor coaching firm.
The views expressed in this article are solely of the author and do not necessarily reflect the views of Cafemutual.